I am director of communications at Americans for Tax Reform, a Washington D.C. based advocacy and policy research organization working for lower taxes and free markets at the federal, state, and local levels. Growing up in the Dakotas I developed a passion for innovation and entrepreneurship. I’ll focus on federal tax and healthcare issues as well as the regulatory battles, political ramifications, and human interest aspects of the peer-to-peer economy during this pivotal time in its history.

Uber Battle of New Orleans Pits Old Guard vs. New

Scoring a taxi in the Big Easy is anything but. Ridesharing alternatives like Uber and Lyft are effectively shut out. Entrepreneurs and civic leaders striving to make New Orleans a world class business destination face an entrenched taxi and limousine industry, outmoded transportation codes, and a foot-dragging mayor and city council. Government imposed barriers to entry abound, keeping competition at bay and customers waiting.

“I have had some terrible experiences with the taxi services in New Orleans,” says Kevin Kane, president of the Pelican Institute for Public Policy, a free market think tank with an office on Magazine Street in the city’s Warehouse District. “Twice this past year, I ordered a taxi to my house to go to the airport and they just didn’t show up.”

For a glimpse of the entitlement mentality ruling the New Orleans taxi industry, visit the website of Nawlins Cab. “The biggest misnomer by the public is that ordering a cab is a guarantee of service,” reads the site, followed by a series of Kafkaesque “tips to increase your odds of catching a cab.”

The first tip the site offers is actually more of a warning. Your cab might be late. Considerably late. “Example: if you want to be picked up at 10:00, the cab may not arrive until 10:20,” concludes tip number one. Got it.

Next, be nimble when the cab finally arrives lest the driver abandon you: “Be ready to leave when the cab arrives, regardless of how tardy it may be, otherwise it may leave to pick-up another order.” Yes, sir.

Once inside the vehicle – if you’ve made it this far — don’t take your frustration out on the driver: “Never exhibit bad, or otherwise rude, behavior in the cab. Drivers will remember.”

The beatings will continue until morale improves.

Screenshot from NawlinsCab.com

Not to pick on one company, but the presence of such attitudes and the confidence to publish them suggest the city is in need of a taxi system its food, music, and nightlife scenes can be proud of. City Hall pays lip service to — but hasn’t exactly rolled out the welcome mat for — transportation alternatives such as Uber, the San Francisco-based ridesharing platform available in 80 U.S. cities and 41 countries across the globe. Last October, Democratic mayor Mitch Landrieu’s then-taxicab bureau director Malachi Hull issued a cease and desist letter to Uber even though the company was not actually operating in New Orleans. There was nothing to cease and desist.

This heavy handedness didn’t sit well with entrepreneur Joe Corbett, who launched a petition that now has 2,300 signatories asking the mayor to “Do the right thing and let UBER come to New Orleans.” Corbett, COO of creative design agency nclud, is concerned the city’s actions will scare off tech workers considering a move to the area. “It is counterproductive to send the message to the rest of the country that New Orleans is a city where your great idea can’t happen and won’t be supported. You want to create an environment that attracts top talent and innovative businesses, because before you know it, a local person will have the next billion-dollar idea. If I have an idea to help the city prosper, the thought that lawmakers could get in the way is terrifying.”

Protectionist transportation codes dictate a three hour minimum for those hiring a limousine or sedan. Customers are also subject to price floors: a minimum cost of $40 per hour for limousines and $35 per hour for sedans. That means a local business owner entertaining clients or a visiting conventioneer seeking a nice sedan ride across town for dinner is stuck with a minimum $105 tab. Plus tip.

That’s bad enough, but there’s yet another city ordinance favoring existing companies and keeping newcomers out: Individuals hoping to make a living behind the wheel of a limo or sedan must own a minimum of two vehicles. Someone able to scrape together enough money to buy just one vehicle is out of luck. They are not welcome in the New Orleans market and cannot help fill the supply gap when a major convention is in town.

Late last week the city council abruptly cancelled a long-scheduled July 22 public meeting where modest changes to the city transportation code were to be considered. No reason for the cancellation was given. “We’re aware the City Council Transportation Committee meeting has been canceled, but we are unclear as to why,” says Tom Hayes, general manager for Uber New Orleans. “Delays in this process are frustrating as it only slows the ability of residents and visitors to gain access to more choice and economic opportunity.”

The proposed changes are weak beer. The three hour minimum requirement for sedans and limos would be scrapped, but the two-vehicle requirement remains and customers would still be stuck with price floors: “in no event shall the total charge be less than $25.00 for luxury sedans, $35.00 for luxury SUV’s, and $45.00 for all other limousines,” the draft changes declare.

“That is purely to protect an entrenched industry from competition,” says Taylor Bennett, spokesman for Uber. “Options, opportunity, and choice for riders and drivers is what we stand for. Instituting a minimum fare in any market is an attempt to limit consumer choice.”

The proposals do make clear that rides can be arranged using an “internet-based software application.” But this would only apply to rides in limos and sedans. Visitors accustomed to using apps to instantly summon a ride via UberX and Lyft can go fly a kite while they wait for a taxi.

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